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Below the Quote on Pre-market comment for Tuesday May 5 by Aakash Shah, Technical Analyst, Choice Broking

Indian equity markets are expected to open on a flat to mildly positive note, tracking GIFT Nifty at 24,082, up by 37 points, as sentiment remains cautious and Gift Nifty hold steady, amid ongoing developments in the Middle East and movement in crude oil prices.

In the previous session, Nifty 50 witnessed a recovery during the day but failed to sustain at higher levels, facing resistance around the 24,300 zone. This indicates continued supply pressure at elevated levels and suggests that the recent upmove was more of a pullback rather than a confirmed breakout.

From a technical perspective, Nifty 50 continues to trade in a sideways trend in the short term. The index is still struggling to sustain above key resistance levels and short-term moving averages. Momentum indicators such as RSI are hovering near the neutral zone, indicating lack of strong directional strength. Immediate support is placed around 23,900–23,800. On the upside, resistance is seen at 24,200–24,300, while a sustained move above 24,585 is required to confirm bullish continuation.

Bank Nifty continues to exhibit relative strength, but the index is now entering a consolidation phase near higher levels. Price action indicates a range-bound movement as momentum begins to cool off after the recent uptrend. Immediate support is placed at 54,300–54,500, while resistance is seen at 55,500–55,600.

On the institutional front, FIIs were net buyers of approximately ?2,835 crore, while DIIs remained strong buyers with inflows of around ?4,764 crore on 04th May 2026, indicating continued support from domestic institutions along with selective foreign participation. India VIX remained elevated but stable around 18.3, suggesting a cautious market environment with the possibility of intraday volatility.

Sectorally, the trend remained broadly positive. Auto, Healthcare, Capital Goods, and select energy stocks outperformed. On the other hand, IT sector underperformed and remained under pressure. Banking supported the market but is now showing early signs of consolidation near higher levels.

Overall, the technical setup indicates a flat opening followed by range-bound and volatile trade. The immediate range for Nifty is seen between 23,800 and 24,300. While the broader trend remains positive, the short-term structure suggests consolidation, and a decisive breakout above resistance levels is required for further upside.